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7 thoughts on “Loose Money = Rising Gold”

Gold is way underpriced at the moment because of the fraudulent selling of ponzi-gold. If all the dealers had to settle they’d all go broke. Delays run 2-4 months. So the price is a phoney underpriced figure set by racketeers.

How high will silver and gold go, graeme?
And what does this mean for a metallic currency- will we be able to see gold coins used to buy groceries, or will we need magnifying glasses and tweezers for every purchase?

Will you attempt to understand SOON. The American financial markets are so corrupt that people are selling make-believe gold (silver, shares, commodities). When this thing gets started they wind up quickly to the point that these guys only buy actual gold that they are selling in order to sell to the people who take delivery.

But now things have gotten so bad that even THAT has been violated. So that people are having to wait 3 months to take delivery. Hence the gold producer and the gold owner are both being ripped off. Gold ought to be twice the price it is now and might stabilise at such a level. To get silver off the internet with immediate delivery you are paying maybe 21USD an ounce whereas they sell you ponzi-silver for 11USD last I look which is the official price.

The fake silver thats out there amounts to at least a years production. Therefore the silver price ought to be maybe 30USD and the silver producers and owners are being ripped off.

This is an interference with the comprehensive pricing system that is necessary for a sound progressing economy. Its distorting prices and is therefore a chaotic setup somewhat closer to the lack of pricing information you get in a commie setup. Its not so much a lack of pricing information but an irrationial and wrong set of prices we are getting.

But its worse than that. Its also into shares. Fake shares are being sold all the time. There are more counterfeit shares out there than real ones in at least the American market. So its a debauch of the capital market with all that implies.

And worst of all we have to assume this is happening with bulk commodities like oil. Since we see that the price of oil has been falling even as inventories have been falling. Even though American gasoline stocks are at their lowest known levels and shortages are breaking out.

What this means is that the prices of many things will be lower than they ought to be for lengthy periods of time, and then they will have to lurch far higher. Like with oil starting a year ago. This is the opposite of what honest speculation is suppossed to acheive. And it means that currently we live in a fools paradise. And that the first sign of economic recovery with be killed in the womb since it will spark off a new round of commodity price rises.

Well how do they go now? On e-gold you can buy a lot of gear and with almost no transaction costs. Silver coins are more robust and convenient than $50 notes which cost far more to maintain. Let the market work it out. It will work out a much better solution than this compulsion and faith-based money. A much cheaper solution.

Mostly it will be coins and digitalized money. But you could have notes as well. Though I doubt there would be much call for them.

How can the market “work it out” when a big part of what we need money for is to pay our tax bills and the government wants it’s payments made using some particular stuff. So long as there is taxation this isn’t a decision that the market can make without the gorilla in the room having a big say. The only way out in my book is to either abolish taxation or to get a wise government that chooses to levy taxes using something that proxies what the market would choose if the gorilla was absent. I’ll argue that gold would be a good choice for a government to make but it whilst it taxes it can’t make no choice.

I see what you are saying nicholas. As a prediction how high will they go?

Well thanks to the corruption of the market they will need to surge a lot higher simply because of so much ponzi paper gold being outstanding. But once the backlog is eradicated, if the Americans don’t clean up their act, out will come the dishonest trading again and they’ll drop in price again. So because of the corruption of the markets we would expect to see this horrible instability in prices. I couldn’t tell you how high it can go. Its hard to see a topside since the Americans are in so much trouble its hard to see how they can avoid galloping inflation. But they ought to be twice as high now. So you could say twice as high and in a reasonable time frame. But if they then don’t get taken up in a sort of frenzied way, or as money, the prices can come back down a long way when the backlog has disappeared.

I wouldn’t like to tip people to try and make money on it. Because to make money you’d have to be fast on your feet. But unless you take delivery then you aren’t being sold gold. Except perhaps by our own Perth Mint. You are being sold fresh air. And if you take delivery and are a civilian and not a market player you cannot expect to be fast on your feet. So if I had the control of my super funds I’d want to be only up to 10% in this sort of gear. Maybe you buy it to cover your ass and not necessarily to get rich. But the thing is you would need to cover your ass because the Americans are in deep trouble.

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